CHS 2011 Annual Report Download - page 43

42 2011 CHS
NOTE 7
NOTES PAYABLE AND LONG-TERM DEBT
Notes payable and long-term debt as of August 31, 2011 and 2010, consisted of the following:
(DOLLARS IN THOUSANDS)
INTEREST RATES AT
AUGUST 31, 2011 2011 2010
Notes payable(a)(k) 0.90% to 8.50% $ 130,719 $ 29,776
CHS Capital notes payable(l) 0.85% to 2.73% 585,549 232,314
$ 716,268 $262,090
Long-term debt:
Revolving term loans from cooperative and other banks, payable in equal installments
beginning in 2013 through 2018(b)(k) 5.59% $ 150,000 $150,000
Private placement, payable in equal installments beginning in 2014 through 2018(c)(k) 6.18% 400,000 400,000
Private placement, payable in equal installments through 2013(d)(k) 6.81% 75,000 112,500
Private placement, payable in installments through 2018(e)(k) 4.96% to 5.60% 86,539 104,231
Private placement, payable in equal installments beginning in 2011 through 2015(f)(k) 5.25% 100,000 125,000
Private placement, payable in equal installments through 2011(g)(k) 11,428
Private placement, payable in its entirety in 2011(h)(k) 15,000
Private placement, payable in equal installments beginning in 2014 through 2018(h)(k) 5.78% 50,000 50,000
Private placement, payable in equal installments beginning in 2017 through 2021(h)(k) 4.00% 100,000
Private placement, payable in its entirety in 2019(i)(k) 4.08% 130,000
Private placement, payable in its entirety in 2021(i)(k) 4.52% 160,000
Private placement, payable in its entirety in 2023(i)(k) 4.67% 130,000
Private placement, payable in its entirety in 2026(i)(k) 4.82% 80,000
Industrial revenue bonds, payable in its entirety in 2011 3,925
Other notes and contracts(j) 2.42% to 12.17% 40,458 14,157
Total long-term debt 1,501,997 986,241
Less current portion 90,804 112,503
Long-term portion $1,411,193 $873,738
(a) The Company finances its working capital needs through short-term lines of credit with a syndication of domestic and international banks.
On August 31, 2011, the Company had two primary committed lines of credit. One of these lines of credit was a $900.0 million committed five-
year revolving facility that was entered into in June 2010, with an expiration date of June 2015, which had no amounts outstanding on
August 31, 2011 and 2010. The second committed line of credit was a $1.3 billion, 364-day revolving facility with an expiration date of
November 2011 that replaced a previous $700.0 million revolving facility that was terminated in November 2010, with no amounts
outstanding in August 31, 2011 and 2010. Subsequent to the Company’s fiscal year ended August 31, 2011, it terminated and replaced both of
the existing revolving credit facilities with new three-year and five-year revolving facilities, each with committed amounts of $1.25 billion,
for a total of $2.5 billion. In addition to its primary lines of credit, the Company had two additional revolving lines of credit, of which one was a
364-day revolving facility in the amount of $40.0 million committed that was terminated in October 2011, and the other is a three-year
revolving facility in the amount of $40.0 million committed, with the right to increase the capacity to $120.0 million, that expires in November
2013. There were no amounts outstanding on either of these two additional revolving lines of credit on August 31, 2011 and 2010. The
Company also has a committed revolving credit facility dedicated to NCRA, with a syndication of banks in the amount of $15.0 million that
expires in December 2011, with no amounts outstanding on August 31, 2011 and 2010. Our wholly-owned subsidiaries, CHS Europe S.A.,
CHS do Brasil Ltda. and CHS de Argentina, have uncommitted lines of credit to finance their normal trading activities in the amount of
$128.8 million as of August 31, 2011 and $27.1 million as of August 31, 2010, which are collateralized by certain inventories and receivables.
The Company has two commercial paper programs totaling up to $125.0 million with two banks participating in the revolving credit facilities.
Terms of the Company’s credit facilities allow a maximum usage of $200.0 million to pay principal under any commercial paper facility. On
August 31, 2011 and 2010, there was no commercial paper outstanding. Miscellaneous short-term notes payable totaled $1.9 million and
$2.7 million on August 31, 2011 and 2010, respectively.
(b) In December 2007, the Company established a ten-year long-term credit agreement through a syndication of cooperative banks in the
amount of $150.0 million.
(c) In October 2007, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $400.0 million.
(d) In June 1998, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $225.0 million.
(e) In October 2002, the Company entered into a private placement with several insurance companies for long-term debt in the amount of $175.0 million.
(f) In September 2004, the Company entered into a private placement with several insurance companies for long-term debt in the amount
of $125.0 million.
(g) In January 2001, the Company entered into a note purchase and private shelf agreement with Prudential Insurance Company. A long-term
note was issued for $25.0 million and a subsequent note for $55.0 million was issued in March 2001.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS